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IRI finds health-conscious products dominate new launches

Submitted by The City Wire Staff on Wed, 03/12/2014 - 11:21pm

Editor’s note: The Supply Side section of The City Wire focuses on the companies, organizations, issues and individuals engaged in providing products and services to retailers. The Supply Side is managed by The City Wire and sponsored by Propak Logistics.

Good-for-you products once again dominated the most successful consumer packaged goods (CPG) launches last year, according to the 2013 New Product Pacesetters report from IRI Worldwide. The consumer marketing firm evaluated 190,000 new products and 9,500 new brand launches that hit retailer shelves in 2013. These products represent high-octane fuel for potential CGP growth, the reports notes.

“Manufacturers are always striving to create breakthrough innovation, and our impressive list of the 2013 Pacesetters, which earned an average of $35 million in their first year, is no exception,” said Larry Levin, executive vice president for IRI.

He said new product innovation also provides excitement for brands and can be game changers for CPG companies and consumers alike.

“Innovation in 2013 is all about healthier-for-you products,” said Susan Viamari, editor, Thought Leadership, IRI. “‘Healthy’ is truly everywhere. From food and beverages to hair care, skin care, and even pet food and cleaning products, consumers not only want to look and feel their best, but they want improved wellness to extend to their homes and pets, too.”

Healthy attributes played a huge role in the success of new food and beverage brands, as seven of the top 10, and 73 of the top 100 food and beverage products launched in 2013 offer a healthier-for-you benefit, according to the report.

Viamari said Greek yogurt topped the list again in 2013, but the most common addition last year was fiber and whole grains which were found in 42% of the new product launches. The report underscores that “dieting” has evolved into “nutritional management.” Consumers are looking for products offering lower calories, less sugar and fewer ingredients, the report notes.

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In the non-food arena, IRI said the average year-one dollar sales for the top 100 brands were $34 million. The top 10 did much better than that. Earning $2 billion in aggregate year-one launch sales, 48 out of the top 100, non-food pacesetters were a wellness product. For the first time in recent pacesetter history, three home-care products achieved top-10 status, including Tide Pods, Ajax Triple Action and Downy Infusions.